PD Ports agrees to $425 million offer from Endeavour Ports
The board of PD Ports, owner and operator of the United Kingdom ports Teesport and Hartlepool, has agreed to a '246 million ($425 million) cash offer from Endeavour Ports Ltd.
The offer amounts to '1.42 ($2.45) per share. At midday today PD Ports’ share price on the London stock exchange was up 6 percent to '1.39 ($2.40) per share.
Endeavour Ports is owned by Industry Funds Management, Challenger Infrastructure Fund, Challenger Life and 3i Group.
“PD Ports fits well with the shareholders’ strategy of targeting infrastructure investments, which provide stable cash flows and attractive growth opportunities,” said Graeme Bevans, director of Endeavour Ports. “We are committed long-term investors and we fully appreciate PD Ports’ commercial importance to the northeast of England. We intend to work with the existing management team and to invest in the business to secure its future success,” added Bevans.
“We are satisfied that the new owners of PD Ports are serious, long-term investors in a ports business such as PD Ports,' said David Harding, chairman of PD Ports.
Shares in PD Ports jumped about 12 percent following PD Port’s announcement to the London stock exchange Oct. 19 that it had been approached about a takeover. At the time, Australia’s Macquarie Bank, which has just bought the Isle of Man Steam Packet Co. and Westpac subsidiary Hastings Fund Management, which owns ports in Australia, were both widely thought to be interested in buying PD Ports.
This agreement follows Tuesday’s announcement that London-based P&O will sells its ports and ferry operations to DP world for '3.3 million ($5.7 billion).